Question

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price. a sofa with a cash price of $400 at $50 down and $20.00 per month for 24 months.
a. $

b. $

c.

Answer 1

50+(20×24)=530
530−400=130
400÷20=20

Answer 2

Answer:

a) $530

b) $ 130

c) 20 months.

Step-by-step explanation:

a)

Total installment price:

As we have to pay a installment of $20 per month for 24 months; also there is a down payment of $ 50

Hence, the total installment paid=$ 50+20×24=$ (50+480)=$ 530

Hence the total installment price is $ 530.

b)

carrying charges:

Carrying charges are the charges one has to pay when installment price is subtracted from the cash price.

Carrying charge= $ 530-$ 400=$ 130

Hence, Carrying charges is $ 130.

c)

number of months needed to save the money at the monthly rate to buy the item for its cash price:

As the cash price is $ 400.

Let 'n' denote the number of months we have to save money at the monthly rate.

As the monthly rate is $20.

Hence 20 n= 400

⇒   n= (400/20)=20

Hence, for 20 months the money have to be saved to buy the item for it's cash price.